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Calendar No. 190
115th Congress } { Report
SENATE
1st Session } { 115-140
_______________________________________________________________________
APEC BUSINESS TRAVEL CARDS REAUTHORIZATION ACT OF 2017
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 504
TO PERMANENTLY AUTHORIZE THE ASIA-PACIFIC ECONOMIC COOPERATION BUSINESS
TRAVEL CARD PROGRAM
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
August 1, 2017.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
69-010 PDF WASHINGTON : 2017
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
RON JOHNSON, Wisconsin Chairman
JOHN McCAIN, Arizona CLAIRE McCASKILL, Missouri
ROB PORTMAN, Ohio THOMAS R. CARPER, Delaware
RAND PAUL, Kentucky JON TESTER, Montana
JAMES LANKFORD, Oklahoma HEIDI HEITKAMP, North Dakota
MICHAEL B. ENZI, Wyoming GARY C. PETERS, Michigan
JOHN HOEVEN, North Dakota MAGGIE HASSAN, New Hampshire
STEVE DAINES, Montana KAMALA D. HARRIS, California
Christopher R. Hixon, Staff Director
Gabrielle D'Adamo Singer, Chief Counsel
Jose J. Bautista, Senior Professional Staff Member
Nathaniel B. Jones, U.S. Secret Service Detailee
Margaret E. Daum, Minority Staff Director
Stacia M. Cardille, Minority Chief Counsel
Charles A. Moskowitz, Minority Senior Legislative Counsel
Sue Ramanathan, Minority Counsel
Laura W. Kilbride, Chief Clerk
Calendar No. 190
115th Congress } { Report
SENATE
1st Session } { 115-140
======================================================================
APEC BUSINESS TRAVEL CARDS REAUTHORIZATION ACT OF 2017
_______
August 1, 2017.--Ordered to be printed
_______
Mr. Johnson, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 504]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 504) to permanently
authorize the Asia-Pacific Economic Cooperation Business Travel
Card Program, having considered the same, reports favorably
thereon without amendment and recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Summary..............................................1
II. Background and the Need for Legislation..........................2
III. Legislative History..............................................3
IV. Section-by-Section Analysis......................................4
V. Evaluation of Regulatory Impact..................................4
VI. Congressional Budget Office Cost Estimate........................4
VII. Changes in Existing Law Made by the Bill, as Reported............5
I. Purpose and Summary
The purpose of S. 504, the APEC Business Travel Cards
Reauthorization Act of 2017, is to permanently authorize the
United States' participation in the APEC Business Travel Card
program that was first authorized by Congress in 2011. The
authority is set to expire at the end of fiscal year 2018.
II. Background and the Need for Legislation
The Asia-Pacific Economic Cooperation (APEC) is a forum
used by some countries in the Asia-Pacific region to promote
economic growth by reducing barriers that hinder trade, travel,
and investment among participating countries.\1\ Since 1989,
Australia; Brunei Darussalam; Canada; Chile; China; Hong Kong,
China; Indonesia; Japan; Malaysia; Mexico; New Zealand; Papua
New Guinea; Peru; the Philippines; Russia; Singapore; the
Republic of Korea; Chinese Taipei; Thailand; the United States;
and Vietnam have been cooperating to improve customs procedures
and market standards.\2\
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\1\About APEC: History, Asia-Pacific Economic Cooperation,
www.apec.org/About-Us/About-APEC/History (last visited on May 26,
2017); Asia-Pacific Economic Cooperation, U.S. Dep't of State, https://
www.state.gov/p/eap/regional/apec (last visited June 16, 2017).
\2\Id.
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In 1997, APEC launched the APEC Business Travel Card (ABTC)
program to encourage free and open trade among member
economies.\3\ The ABTC program facilitates safe, fast, and
efficient access to APEC markets. The program reduces business
travel costs and wait times for ABTC cardholders.\4\ Under the
ABTC program, each member nation establishes its own screening
requirements, issuing cards mostly to business travelers and
senior government officials participating in APEC business
meetings and conferences.\5\
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\3\APEC Business Travel Card, Asia-Pacific Economic Cooperation,
https://www.apec.org/About-Us/About-APEC/Business-Resources/APEC-
Business-Travel-Card.aspx (last visited July 11, 2017).
\4\Reducing Business Travel Costs: The Success of APEC's Business
Mobility Initiatives, Asia-Pacific Economic Cooperation (Nov. 2011),
available at http://publications.apec.org/publication-
detail.php?pub_id=1214.
\5\APEC Business Travel Card: Operating Framework, Asia-Pacific
Economic Cooperation (Feb. 15, 2007), available at http://
www.businessmobility.org/key/abtc_operating_framework.pdf.
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All applicants are vetted prior to receiving a card. For
example, American citizens must be an existing member in good
standing or be approved in a U.S. Customs and Border Protection
(CBP) trusted traveler program such as SENTRI, NEXUS, or Global
Entry.\6\ Once the application is approved, cardholders are
issued the ABTC, which provides access to fast-track
immigration processing lanes. Upon arrival at an airport of
entry, ABTC users are vetted against customs and immigration
databases to ensure they meet trusted traveler requirements.\7\
Similar to screening procedures for other visa holders, CBP
officers make admission determinations on a case by case basis
for each ABTC traveler.\8\
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\6\U.S. Asia-Pacific Economic Cooperation (APEC) Travel Card
Program FAQs: Eligibility for the U.S. APEC Business Travel Card, U.S.
Customs & Border Patrol, https://www.cbp.gov/travel/trusted-traveler-
programs/apec-faqs (last visited June 16, 2017) (see ``Am I eligible
for the U.S. APEC Business Travel Card'').
\7\Id.
\8\U.S. Asia-Pacific Economic Cooperation Travel Card Program FAQs:
Program Benefits, U.S. Customs & Border Patrol, https://www.cbp.gov/
travel/trusted-traveler-programs/apec-faqs (last visited July 27,
2017).
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All 21 APEC member nations participate in the ABTC program,
but only 19 nations are full members of the program.\9\ Full
members provide ABTC holders visa-free travel into the country
and access to expedited immigration lanes upon arrival.\10\ The
United States and Canada are transitional members, meaning that
a short-stay visa is still required for nationals of a non-Visa
Waiver Program country.\11\ In support of greater APEC
cooperation, the United States allows APEC users to use
designated lines at airports that are maintained to screen
pilots and airline crew.\12\ The United States affords foreign
ABTC holders expedited visa interviews at designated embassies
and consulates in APEC countries.\13\
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\9\Achievements and Benefits, Asia-Pacific Economic Cooperation,
https://www.apec.org/About-Us/About-APEC/Achievements%20and%20Benefits
(last visited May 28, 2017).
\10\APEC Business Travel Card, Asia-Pacific Economic Cooperation,
http://www.apec.org/About-Us/About-APEC/Business-Resources/APEC-
Business-Travel-Card.aspx (last visited May 28, 2017).
\11\Id.
\12\United States-Short-Term Business Visit, APEC Business Travel
Card (ABTC), available at http://travel.apec.org/united-states-short-
term-business-visit.html (last visited July 27, 2017).
\13\Id.
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Because the United States did not offer ABTCs to its
citizens, but allowed expedited immigration access to foreign
ABTC holders, American businesses were placed at a competitive
trade disadvantage in a vital region of the world.\14\ To
remedy this imbalance, Congress passed and President Obama
signed the Asia-Pacific Economic Cooperation Business Travel
Cards Act in 2011.\15\ The law authorized the Department of
Homeland Security (DHS) to issue ABTCs through the end of
fiscal year 2018 to eligible business leaders and U.S.
Government officials who are actively engaged in APEC
business.\16\
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\14\S. Rep. No. 1487, 112th Congress (2011).
\15\P.L. No. 112-54 (112th Cong.); see also S. Rep. No. 1487, 112th
Congress (2011).
\16\P.L. No. 112-54 (112th Cong.) at section 2(a); 8 U.S.C. Sec.
1185 note.
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DHS began issuing U.S. ABTCs in June 2014.\17\ As of March
2017, there were approximately 30,300 American citizens
participating in the ABTC program.\18\ Unless reauthorized, the
authority for the United States to issue ABTCs to its citizens
will expire on September 30, 2018.\19\ The DHS, Department of
State, and CBP support ABTC reauthorization.\20\ ABTC
reauthorization is also endorsed by multiple U.S. business
organizations, whose members aspire to maintain parity with
their foreign business competitors.\21\
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\17\CBP Extends Validity to 5 Years for Newly U.S. Issued APEC
Business Travel Card, U.S. Customs and Border Protection (December 1,
2016) https://www.cbp.gov/newsroom/national-media-release/cbp-extends-
validity-5-years-newly-us-issued-apec-business-travel.
\18\Committee Staff interview with Dep't of Homeland Sec. officials
(Apr. 12, 2017).
\19\8 U.S.C. Sec. 1185 note (2012).
\20\Committee Staff interviews with Dep't of Homeland Sec. and
Dep't of State officials (July 2016).
\21\Letters from the business industry to Senator Mazie Hirono (on
file with the Committee).
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S. 504 would permanently reauthorize the U.S. ABTC program,
providing benefits to American entrepreneurs at no cost to
American taxpayers.\22\ The removal of the sunset provision
does not eliminate or alter the Secretary of Homeland
Security's authority to suspend or terminate the ABTC program
in the interest of the United States. The Committee intends
that S. 504 be budget neutral, as DHS retains authority to
collect ABTC holder fees sufficient to maintain the operational
costs associated with the ABTC program.
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\22\Committee Staff interview with Dep't of Homeland Sec. officials
(May 16, 2017).
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III. Legislative History
On March 2, 2017, Senator Mazie Hirono (D-HI) introduced S.
504, the APEC Business Travel Cards Reauthorization Act of
2017, with Senator Steve Daines (R-MT). Senators Amy Klobuchar
(D-MN) and Cory Gardner (R-CO) joined as co-sponsors on March
28, 2017, and May 8, 2017, respectively. The bill was referred
to the Committee on Homeland Security and Governmental Affairs.
The Committee considered S. 504 at a business meeting on
May 17, 2017. No amendments were offered. The legislation was
approved by voice vote en bloc. Senators present for the vote
were Johnson, McCain, Portman, Paul, Lankford, Daines, Enzi,
McCaskill, Tester, Heitkamp, Peters, Hassan, and Harris.
IV. Section-by-Section Analysis of the Bill, as Reported
Section 1. Short title
This section specifies that the bill may be cited as the
``APEC Business Travel Cards Reauthorization Act of 2017.''
Sec. 2. Permanent authorization
This section amends Section 2(a) of the Asia-Pacific
Economic Cooperation Business Travel Cards Act of 2011 (8
U.S.C. Sec. 1185 note) by removing the sunset provision. This
permanently authorizes the ABTC program.
V. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the Rule. The Committee agrees with the Congressional Budget
Office's statement that the bill contains no intergovernmental
or private-sector mandates as defined in the Unfunded Mandates
Reform Act (UMRA) and would impose no costs on state, local, or
tribal governments.
VI. Congressional Budget Office Cost Estimate
June 14, 2017.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 504, the APEC
Business Travel Cards Reauthorization Act of 2017.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz.
Sincerely,
Keith Hall.
Enclosure.
S. 504--APEC Business Travel Cards Reauthorization Act of 2017
The Asia-Pacific Economic Cooperation (APEC) Business
Travel Cards Act of 2011 (Public Law 112-54) authorized the
Department of Homeland Security (DHS) to issue special cards to
eligible U.S. citizens to facilitate international travel to
participating countries (mostly in Asia). Under the act, DHS
may not issue the cards after September 30, 2018. S. 504 would
extend this program permanently.
DHS collects a fee of $70 from applicants for the APEC
card. These fees are classified in the budget as offsetting
receipts (a reduction in direct spending) and are available to
DHS to spend without further appropriation. In fiscal year 2016
DHS collected a total of about $1 million in fees. CBO
estimates that enacting S. 504 would have no significant net
effect on DHS spending because we expect the department would
collect and spend roughly the same amounts in future years.
Because enacting the bill would affect direct spending,
pay-as-you-go procedures apply; however, we estimate that the
net effect would be negligible in every year. Enacting the bill
would not affect revenues.
CBO estimates that enacting S. 504 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2028.
S. 504 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Mark Grabowicz.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
VII. Changes in Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
S. 504 as reported are shown as follows (existing law proposed
to be omitted is enclosed in brackets, new matter is printed in
italic, and existing law in which no change is proposed is
shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 8--ALIENS AND NATIONALITY
* * * * * * *
CHAPTER 12--IMMIGRATION AND NATIONALITY
* * * * * * *
SUBCHAPTER II--IMMIGRATION
* * * * * * *
PART II--ADMISSION QUALIFICATIONS FOR ALIENS; TRAVEL CONTROL OF
CITIZENS AND ALIENS
* * * * * * *
SECTION 1185--TRAVEL CONTROL OF CITIZENS AND ALIENS
* * * * * * *
ASIA-PACIFIC ECONOMIC COOPERATIVE BUSINESS TRAVEL CARDS ACT OF 2011
* * * * * * *
SEC. 2. ASIA-PACIFIC ECONOMIC COOPERATION BUSINESS TRAVEL CARDS.
(a) In General.--[During the 7-year period ending on
September 30, 2018, the Secretary] The Secretary of Homeland
Security, in coordination with the Secretary of State, is
authorized to issue Asia-Pacific Economic Cooperation Business
Travel Cards (referred to in this section as `ABT Cards') to
any eligible person, including business leaders and United
States Government officials who are actively engaged in Asia-
Pacific Economic Cooperation business. An individual may not
receive an ABT Card under this section unless the individual
has been approved and is in good standing in an international
trusted traveler program of the Department of Homeland
Security.
* * * * * * *
[all]